Compensation Strategy for The Miquon School – Board Discussion April 21, 2010 Presented by the Staff Recruitment & Retention Committee Julia Finney Marie Ford, Chair David MacDonald Erica Nelson Arabella Pope 1

Tonight’s Discussion Introduce the benefits and key elements of a compensation strategy Discuss a compensation philosophy for Miquon Preview different compensation models Outline next steps

Benefits of a Compensation Strategy Reinforces the direction of Miquon and aligns our mission, values and strategies to compensation practices Prioritizes compensation choices to make the most effective use of our fiscal resources in supporting the staff Provides a framework to communicate Miquon’s values and expectations for compensation Supports current and future staff initiatives in areas of recruitment, retention and diversity

Definition – Total Compensation For the purposes of the Miquon compensation strategy, we are defining total compensation as: Monetary Compensation Direct compensation, i.e., salary, bonus, pay increases Indirect Compensation Employee benefits that have monetary value, e.g., health insurance, retirement plan, vacation, tuition remission, etc. Non-monetary rewards Tangible and intangible benefits, e.g., work environment, culture, learning opportunity, opportunity to have a positive impact

Building Blocks of a Compensation Strategy What should be accomplished and how… The set of statements that form a framework and guide our decision making about compensation at every level Should reflect and support Miquon’s mission, values and strategy/positioning Elements of our compensation philosophy Institutional objectives – what the compensation program must do to support the success of Miquon Compensation policies – agreed upon standards to follow in creating and implementing a compensation model The structure of the compensation system designed to achieve the objectives Variety of models exist including Pay for performance Faculty rank Broadband Compensation Philosophy Compensation Model

Compensation Philosophy The most valued asset of Miquon is its staff. The ability to fulfill the mission of the school and excel as a leader in independent progressive education rests with the school’s staff. Miquon’s compensation philosophy should enable the school to attract and retain a workforce that is strongly aligned with the school’s mission and philosophy, well-equipped in its diversity of experience to advance the school in its identified areas of strength and purpose. Miquon’s compensation system seeks to reward professional growth (skills/competencies) consistent with Miquon’s progressive ideals and the needs our children and to recognize staff who demonstrate excellence of teaching and effective administration.

Compensation Philosophy – Institutional Objectives The compensation model should support and reinforce agreed institutional objectives and positioning. Currently we might say: We wish Miquon to be: A model of good practice and innovation in Progressive education Building a cadre of teachers strong in Progressive values and current pedagogical skills Innovating curriculum and practices to respond to new developments in child learning/cognition and best practices in the design of curriculum A force for the preservation of childhood Expanding expertise in child development and current research on children’s learning Meeting children’s needs in a changing world A center of environmental stewardship Increasing environmental awareness and understanding Protecting and enhancing the Miquon campus

Discussion Questions Do you think we are on the right path in creating a compensation philosophy that specifically aligns/links Miquon’s staff to our mission/positioning? Do you agree that these the right institutional objectives? Are there others that should be included?

Compensation Philosophy – Policies Miquon’s Compensation Program should be: Competitive with the market of small independent schools in the Philadelphia region, helping to position Miquon as the employer of choice for those who are committed to/passionate about working in progressive education. Flexible, enabling the principal and board to respond to and achieve changing institutional needs. Fair and internally equitable, reflecting differences/similarities in work load and performance. Transparent, creating clarity and line of sight into expectations of the staff and the priorities of Miquon. Comprehensive, reflecting monetary and non-monetary aspects of compensation.

Miquon’s Current Compensation Model Current System is a Single Step Model All teachers with the same status and experience earn the same salary. Teaching status, years of experience and (to some degree) graduate education are criteria that define compensation for faculty. Only increases come from annual pay raises. Specialists compensated as lead teachers Assistant teachers paid at 75% of lead teachers. Starting salaries set based on total years of experience (teaching and other – with judgment) $500 added to base salaries for every decade of experience. $500 added to base salary for graduate degree. Teaching Status Experience Education

Example Compensation Model – Broadband System Broadband Model – a system with fewer steps and more overlap to transition away from rewarding only degrees and longevity FACULTY MODEL - ILLUSTRATION ONLY Band One: Novice/Entry = $30-$35,000 Band Two: Instructor/Experienced = $35-$50,000 Band Three: Master Teacher = $50-$65,000+ Each band is defined by differing expectations for experience, workload, performance and skill-set Promotion from one rank to another is dependent upon a major evaluation review (administrative review, peer review, portfolio demonstration) and is accompanied by a major jump in salary. Allows salary growth outside of just the annual pay increase.

Example Compensation Model - Faculty Rank System More egalitarian approach, where all faculty at a particular “rank” or role type earn the same fixed salary; based on university models. A school might have three or four ranks with significantly differentiated salaries, e.g., Intern/novice - $25,000 Instructor/Experienced Teacher - $32,500 Team coordinator/mentor - $50,000 Master Teacher - $55-$75,000 Promotion from one rank to another is dependent upon a major evaluation review (administrative review, peer review, portfolio demonstration) and is accompanied by a major jump in salary.

Next Steps Continue to flesh out the compensation philosophy based on tonight’s discussion and feedback Interview heads of schools who adopted new compensation model or NAIS resources to identify lessons learned and potential implications for Miquon Evaluate alternative compensation models for fit with our philosophy (pros, cons) Analyze the financial implications of different models versus current one Define structure of a comp model and how to build it from various components (base, bonus, benefits) Present the new compensation model and implementation plan to the Board for approval at the June meeting

Compensation Strategy for The Miquon School – Board Discussion

Miquon Positioning Statement The Miquon School provides a progressive education that prepares children for the future by developing creative problem solvers, confident leaders, and socially responsible individuals who have a clear sense of who they are. Miquon students achieve this by: Experiencing hands-on learning that allows them to develop at their individual pace (social, emotional, and academic) Learning about the environment through individual exploration and directed learning in the environment Having the time to grow and learn while fully experiencing their childhood.